Media Release 1 July 1999: Signing of the DTA Entered into with Australia

SOUTH AFRICAN REVENUE SERVICE
MEDIA RELEASE NUMBER 14 OF 1999

1 JULY 1999

SIGNING OF THE DOUBLE TAXATION AGREEMENT ENTERED INTO WITH AUSTRALIA

An Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income was signed in Canberra today by the South African High Commissioner to Australia, Dr BG Ranchod and the Australian Assistant Treasurer, Senator Rod Kemp.

It is practice in most countries for income tax to be imposed both on the worldwide income derived by residents of the country and on income derived by non-residents, which arises in the country. The effect of such a system is that income derived by a resident of one country from a source in another country is subjected to tax in both countries. As this position clearly discourages foreign investment, it is normal for countries, which have trade relations to conclude double taxation agreements. Such agreements commonly provide that income of a particular nature will be taxable in only one of the countries, or may be taxed in both countries with one of them allowing a credit for the tax imposed by the other.

The Agreement is similar to other agreements, which have been entered into in the past with other countries and will come into force after all the constitutional procedures have been completed by both countries.

ISSUED BY THE COMMISSIONER FOR THE SOUTH AFRICAN REVENUE SERVICE
PRETORIA

Contact persons:
Ron van der Merwe
Tel No: (012) 422-5144
Fax No: (012) 422-5191

Petro Bester
Tel No: (012) 422-4906
Fax No: (012) 422-5191



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